Can you add customer credit on sales invoice to increase that account, and do the same for suppler credits on Purchase?
Not sure what you mean. What you are trying to achieve?
@lubos, i am sorry before. We know that Manager have an account named Supplier Credit and Customer Credit, that account will be filled by amount that over payment by entity or customer. for customers credits, i hope that we can to decrease that account when customer make a transaction in sales order And so on Supplier credits.
@lubos, @Brucanna, I need your help with my accounting with Manager. I run a web development agency and I charge my clients in Naira, which in most cases is inclusive of hosting and domain registration. I register these as Income in Naira and the register my expenses in USD when I purchase hosting, but I pay with my bank card which is automatically converted based on the USD/NGN exchange rate. I will then go into Exchange rate setting and update. I was fine with this until the CBN made a policy that stopped Naira cards from been used for international transaction.
Now I was forced to get a USD Denominated card. Now I cannot just change my base currency to USD because it will mess up all my previous records because my supplier’s currency was created in Naira. At one point I tried duplicating my suppliers and having a USD currency for each duplicate. I didn’t like that option because my work is not exclusively charged in USD.
I have tried different things but it’s messing up my records. What will you advice me to do
Do I just find a way of separating my transactions into separate accounts to avoid this mess or you have any wise wisdom that will help me navigate this mess?
@lubos, @Brucanna. The reason why this started giving me concerns is that my domain registrer wanted me to add a prepay credit to my account so that my future transactions are automatically completed and setup via API. Initially, this supplier currency was in Naira which is automatically converted to USD by my bank. But now that I have to use a USD card to add the funds. It seemed to be messing up my accounts.
How to I record this prepay credit in my account?
How do I spend from this credit for future invoices because previous records were in Naira and future records will be in USD?
This is not a complicated situation. The key is to create a new cash account for the USD-denominated card. Do not try to make the new card a continuation of the old cash account for your NGN-denominated card.
I don’t know of an easy alternative to duplicate suppliers/customers if you want to have invoices in both currencies.
To assist with separating your customers/suppliers you could use codes which group them by currency. Also for one of them, say U, add a discreet character to their name such as *
Also you could put each currency into their own Receivables/Payables control account.
The current Accounts Payable account could be renamed - AP : Naira.
Under Settings - Chart of Accounts a new Accounts Payable account would be created as - AP : USA, with the control account box ticked and made up of Suppliers. Then you would go to the USA suppliers and change their control account to AP : USA.
Repeat for Accounts Receivable.
Thanks @Brucanna. How dp I create supplier credit and spend from that credit for my future purchases? Say I had to pre-pay for domain registration with my domain registrar.
Use one of two techniques, as described in these Guides:
http://www.manager.io/guides/record-supplier-deposits-and-advances/7095
http://www.manager.io/guides/avoid-automatic-credit-allocations/10342
Both techniques are equivalent. The second gives more visibility into supplier credits.
@Brucanna , Thanks for your responses, it really helped me sort things out. But the best option I have is to split my account into separate Businesses in Manager at the end of this financial year (September, 2017) since the income are coming from different business units currently serving as a department under the umbrella enterprise.
@Tut, The links you sent me are well illustrated but didn’t meet my need maybe because I might have misled you. What I am trying to achieve is a pre-payment. I made a prepaid deposit to my supplier (Domain registrar) for future transactions. How do I record this prepaid account and apply future invoices to that prepaid deposit.
Thanks
The links I provided earlier are specifically for situation like yours. Read them again, understanding that while an example might be given for a selling situation, the same procedures work for buying situations.
@Tut, I get it and I did it exactly as you advised, but the problem was that after following your guide, I ha a negative balance against the suppliers account, but when I applied an invoice to the prepayment, the value increased instead of reducing by the value of the invoice
First, a negative number in Accounts payable for a supplier indicates that you have a credit with the supplier. In other words, your Accounts payable balance with that supplier is in debit. (I know, the terminology is confusing. But Accounts payable is a liability account, so it is a credit account. When you owe suppliers, the balance of the account increases. When they owe you, it decreases.)
Second, you can’t apply an invoice to the prepayment. It’s the other way around. You didn’t say which of the two methods I linked you to was used. If the first, Manager applies your credit to the purchase invoice. If the second, you apply the credit in the special account to the purchase invoice. Either way it should drive the balance of Accounts payable (or the special account if you’re using that approach) in the positive direction because you have used up the credit. That’s exactly what you said happened: “the value increased.”
Consider a simple example, using the first approach. Start with a zero balance in Accounts payable.You spend money for 120 and allocate the expenditure to Accounts payable and your domain registrar. Accounts payable goes to -120. The first monthly payment of 10 comes due and you enter a purchase invoice for 10. Manager automatically pays the purchase invoice and changes Accounts payable to -110. Repeat that for the entire year and Accounts payable will be zero.
If this is not the behavior you are seeing, you need to give more specific information to illustrate the problem. Screen shots may be necessary.
@Tut, yes, I tried both examples but the result was becoming very confusing. Following you illustration in this response, I got say -120 after I applied the spend money to account payable for that supplier, but the invoice of say 10 increased it to -130 instead of -110 as in your illustration. Maybe I’m doing something wrongly. I’ll go over it again and report back my findings.
Thanks
It sounds like you did a sales invoice instead of a purchase invoice. Or you entered a negative quantity in a purchase invoice. And moving from -120 to -130 is a decrease, not an increase.
@Tut, thanks for the correction, I guess I was just scared seeing the negative balance that I deleted it and did something else that gave me the wrong output, I’ve tried it again and it worked. Thanks so much, I really appreciate your efforts and the effort of every community member.